ABI Says Cost of UK Home Insurance Falls by 6%-Buildings; 5%-Contents

The Association of British Insurers announced that the cost of home insurance has fallen over the last year according to its latest Average Quarterly Household Premium Tracker, which is based on information from ABI members, who cover 90 percent of the home insurance market. The index tracks the price paid for household buildings, contents and combined insurance.

The Tracker listed the following findings for the 4th quarter of 2014:
– The average annual premium paid for building insurance was £230 [$350] or £4.43 [$6.74] a week. This was down 4 percent on the previous quarter and a fall of 6 percent over the year since quarter 4, 2013.
– For contents insurance, the average annual premium paid was £124 [$188.63], or £2.38 [$3.62] a week. This was 4 percent less than the previous quarter and down 5 percent over the same quarter a year ago.
– The average annual premium paid for a combined buildings and contents policy was £291 [$442.53], or £5.60 [$8.52] a week. This was down 1 percent on the previous quarter and fell by 3 percent over the year.

Mark Shepherd, the ABI’s Manager, General Insurance, commented: “There is no substitute for home insurance. Last winter’s floods dramatically highlighted the value of insurance, with insurers dealing with over 13,000 claims from flooded property owners. With the average domestic theft claim of £1,600 [$2,433], and the average cost of dealing with subsidence running at £6,900 [$10,495] home insurance is outstanding value of money.

“The expertise of insurers in assessing, planning and pricing for unwelcome events, such as bad weather, ensures that millions of families are benefitting from very competitively-priced home insurance that is protecting them from many of life’s unexpected and unwelcome events.”

Source: Association of British Insurers (ABI)

Topics Homeowners